SPI offers a Money Broking service to private clients to meet their individual needs. Our services include daily call facilities, term deposits and money market assets. Risk management is fundamental to Money Broking, therefore funds are spread over several banks to reduce exposure to any single bank.

We set prudential limits under Sanlam Investment Management’s strict risk management guidelines, which are part of our operational procedure. You can select the banks with which you prefer to deposit your cash.

What we offer

We canvas the market on a daily basis on your behalf, to ensure optimum returns are achieved. This also enables the dealers to identify any special opportunities that would fit your particular risk profile.

Lender Deposits, Withdrawals and Income

The Money Market‘s sophisticated dealing and administration system provides the convenience of settlement within SPI of any transaction across the entire equity and debt product range.

The salient features of our Money Broking service include:

 

• Call Deposit Facility
  
  A call deposit is an interest-bearing account from which funds can be deposited and withdrawn on demand. Call deposits can be managed with ease as you can make deposit and withdrawal instructions telephonically.
  
  You can withdraw your funds with immediate effect. However, notification for all withdrawals for the day must be given by 12:00, as the funds are re-invested on a daily basis.
  
  Funds are paid electronically or by cheque. Payments from a call deposit account are restricted to the client’s nominated account, and cannot be transferred directly to third parties.
  
  Sanlam Private Investments offers competitive interest rates linked to current market interest rates. We calculate interest on a daily basis. Interest payments are either capitalised or paid into your nominated bank account.
  
  

• Fixed Deals
  
  A fixed deposit is an investment where money is placed with a bank for a fixed period. The interest rate remains the same for the period of the investment and does not fluctuate.
  
  The fixed deposit is a short-term investment vehicle. Funds can be fixed for 1 week to 12 months, although longer-term investments can be arranged on request. Interest is paid out monthly or when the investment matures.

• Bankers' Acceptances (BAs)
  
  A BA is an unconditional order in writing requiring the bank to which it is addressed, to pay on demand or at some future date an agreed sum of money. BA’s offer fixed-rate financing for periods of 30 to 120 days, with the most common term being 90 days. In the secondary market, any term can apply. The discount rate is influenced by rates in the money market and is subject to change on a continuous basis. If the bank agrees to the terms of the bill, it signifies acceptance by signing on the face of the bill.
  
  

• The benefits of purchasing a Bankers' Acceptance are:
  
  

• they permit the client to obtain short-term financing

• they supplement seasonal- or short-term shortages in working capital

• BAs are a relatively inexpensive form of trade financing

• BAs alleviate the uncertainty of adverse movements in short-term lending rates, and

• the client can monitor the discount rate and select the optimum discount date.

Rates are all market related. If you sell your BA before maturity, you might suffer a loss on your investment.

 

• Negotiable Certificates of Deposit (NCDs)
  
  A Negotiable Certificate of Deposit (NCD) is a fixed deposit certificate that may be negotiated (traded) to a third party. The institution issuing the certificate undertakes to pay the holder the initial investment plus the interest, at the rate stated on the certificate, on maturity. The purpose is to provide flexibility for business clients through an attractive investment facility with the option to trade the instrument for cash, should the need arise. Negotiable Certificates of Deposits usually run for a period of 3 – 12 months. In the secondary market any period can apply.

 

For further information regarding Money Broking, please contact Michelle Louw (michellel@sim.sanlam.com) or Rhoanne Chrisswell (rhoannec@sim.sanlam.com).